If you’ve ever taken some sort of interest in Bitcoin then you’ll probably want to know about Bitcoin wallets too. They’re devices that can keep your digital asset safe and allow you to transfer Bitcoin and cryptocurrencies as needed.
Did you know that there are several kinds of Bitcoin wallets? Here is a short guide to them.
What is a Bitcoin Wallet?
A Bitcoin wallet is exactly what it says- a program or device that can hold and interact with the Bitcoin or cryptocurrency network, which is usually Blockchain.
These wallets ‘control’ your digital asset by way of cryptography. Each has a unique set of code, or private keys that only the owner knows. The keys are used as a digital signature for transactions, such as accepting new cryptocoins or transferring them to another holder.
There are four kinds of Bitcoin wallets available- hardware wallet, web wallet, mobile wallet and desktop wallet. All of these Bitcoin wallets can store digital assets, including other cryptocurrencies.
Hardware wallets are considered the most secure wallet to hold Bitcoin, mainly because they’re physical devices that can be taken offline. They assume the form of a USB drive and can be plugged into a computer or laptop when they wish to make a transaction.
Investors who use etherum code to make a profit by trading Bitcoin and other cryptocurrencies will want a hardware wallet where they can store the digital assets. As a side note, hardware wallets are immune to virus attacks, hacks and online thefts. You can invest about $100 and purchase a hardware wallet from a reputable company, such as Trezor or Ledger.
Web wallets are online sites that can store and send Bitcoin for you. Since they’re online you can access your assets virtually anywhere and on any device, such as your smartphone or laptop.
When you pick a web wallet it’s best to do your homework and sign up only at a reputable platform. Also, don’t put all your Bitcoin there as they’re vulnerable to cyber attacks and stealing. If possible, choose a platform that offers some kind of user guarantee or stores their customer’s cryptocurrency using secure methods.
Mobile wallets are apps that are downloaded onto a tablet or smartphone. These apps can act as a wallet that can hold your Bitcoin.
Most of these apps have a contactless transfer technology, such as NFC so Bitcoin owners can exchange them in physical shops. They could either come from Android or iOS but there are some that pose as legitimate apps, so it’s best to check reviews and popular mobile wallets before making a decision.
Desktop wallets are similar to mobile wallets in that they’re programs or software that can store your Bitcoin in private keys. Some offer additional features, such as integration options to your preferred crypto exchange.
There’s also a danger that these software could be hacked, and as such it’s best to exercise caution when choosing a desktop wallet for your Bitcoin.